Small caps retreat

Alex Alexandrov | Mar 19, 2008 4:21pm EDT | Comment

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The Russell 2000 (NYSE:IWM) posted a decline as investors consolidated their positions following Tuesday’s big rally. The small-cap index declined 17.80 points, or 2.61%, to 664.13. The Dow Jones Industrial Average (INDU) lost 293 points, or 2.36%, to 12,099.66.

On a year-to-date basis, the Russell 2000 has shed 13.30%, while the Dow is down 8.78% and the S&P 500 has let go 11.57%.

Small-cap stocks opened in the green but lost steam and reversed midway through the session. The bullish sentiment in the morning was partially attributed to news that Morgan Stanley (NYSE:MS) beat analysts’ expectations despite reporting a decline in fiscal first-quarter profit.

That’s good news for investors worried that the pain that from Bear Stearns (NYSE:BSC) could spread to other investment banks.

The financial services sector was among the winners today. Among the gainers was small-cap investment bank MCF Corp. (Nasdaq:MERR), which saw its shares rise nearly 15%.

Going the opposite way was New York-based Broadpoint Securities Inc. (Nasdaq:BPSG) and financial holding company Stifel Financial Corp. (NYSE:SF).

The Russell 2000 held on to its gains until about 12 p.m. ET, when the bears took control and the index began a steady decline, closing at its lowest level of the day.

Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• LaBarge Inc. (LB), up 24% to $12.97 on news of a robust third-quarter guidance.
• Halozyme Therapeutics, Inc. (HALO), up 23% to $6.06.
• EnerNOC Inc. (ENOC), up 17% to $12.95.

Biggest percentage losers:

• Centene Corp. (CNC), down 22% to $13.86 on news that first-quarter earnings may be below the previous guidance.
• SI International, Inc. (SINT), down 20% to $19.54 on news of a lowered first-quarter and full 2008 guidance.
• Uranium Resources, Inc. (URRE), down 19% to $5.71.

Volume leaders:

• EMCORE Corp. (EMKR) 11,196,200 shares traded.
• YRC Worldwide Inc. (YRCW) 4,884,400 shares traded.
• Hovnanian Enterprises, Inc. (HOV) 4,200,000 shares traded.

The day saw 69 small-cap stocks set 52-week lows, while three small caps established a 52-week high.